The Iraqi dinar

by **claud39** on Sat Aug 08, 2020 11:36 am

[size=40]The Iraqi dinar[/size]

By
Josiane Rachel
-
May 27, 2014

The Iraqi Dinar (IQD) is the official currency of Iraq. The current dinar was introduced on October 15, 2003 and became the sole currency in circulation in the country three months later.
However, the dinar is an old currency which was initially put into circulation with the endorsement of the United Kingdom, the mandating power, in 1931. The main objective of the introduction of the dinar was to replace the Indian rupee which was in circulation in the country. since the early 1920s.
Once the republic was proclaimed in Iraq, the new leaders decided to sever ties with the United Kingdom, which notably resulted, in the 1950s, by the end of the link between the Iraqi dinar and the pound sterling on the market. foreign exchange. A link remained with the US dollar, however, at a rate of one Iraqi dinar to around $ 3.33 for more than 20 years, until the Iran-Iraq War.
During the 1980s, the direct impact of the war, the value of the Iraqi dinar melted on the foreign exchange market, reaching around 0.25 dollars per dinar. Following the First Gulf War, and the established separation zone, the country was divided into two, this division also valid for the monetary system. In the north, a "Swiss dinar" was established, valued at 0.33 US dollars per dinar. In the rest of the country, the dinar bearing the effigy of Saddam Hussein was still current, its price oscillating until the fall of the regime in 2003 between 2,500 and 4,000 dinars for 1 USD.
The fall of Saddam Hussein had as a direct consequence the monetary unification of the country with the introduction of a new Iraqi dinar.
With the arrival of a new currency following the invasion of Iraq by the Americans, a strong wave of speculation marked the launch of the new Iraqi dinar, especially in other Arab countries. This wave of speculation was particularly intense in Egypt. Called the “bremer”, after the American administrator in Iraq, the new Iraqi dinar experienced a real boom on the black market during the first months of issuance. For example, in Egypt, one of the hubs of the black market for currencies in the Middle East, the Iraqi dinar has climbed to 18,000 Egyptian pounds per million dinars while its real value does not exceed 4,500 pounds per million. of dinars. However, following this euphoria, the exchange rate of the Iraqi dinar calmed down.
Since then, a new monetary reform has been planned by the authorities. According to several reports, Iraq is planning to make its currency lose three zeros, a method commonly used by countries in difficulty to revitalize the economy. The aim is to make currency trading easier and give a new boost to an economy that relies primarily on oil revenues. New banknotes could thus appear by the beginning of 2011.

https://actufinance.fr/forex/monnaies/dinar-irakien